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If the US defaults, Would Treasuries be Good Collateral??

MsMorrisineMsMorrisine Posts: 33,019 ✭✭✭✭✭
in Precious Metals
Exclusive: Fed planning for potential default


Going to the Fed Window with Treasuries as Collateral....

would that change once the US Defaults? Would Treasuries still be good collateral?

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Comments

  • derrybderryb Posts: 36,793 ✭✭✭✭✭
    Normally, IOUs from someone who can't pay their bills is not a good thing. But then again these are abnormal times.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • SpoolySpooly Posts: 2,108 ✭✭✭
    They will give you "new" treasuries for your "old" treasuries....... laughing all the way to the bank!
    Si vis pacem, para bellum

    In God We Trust.... all others pay in Gold and Silver!
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